The 3rd January 2012 saw the introduction of new, tighter rules in the London Low Emission Zone (LEZ), which includes most of the area inside the M25.
Although the new LEZ rules only specify Euro 3 emissions compliance for vans under 3.5t, many van operators seem to have decided to go one better and buy a van that is Euro 4 compliant – perhaps with an eye to future LEZ rule changes.
What Has Changed?
The new LEZ rules require vans under 3.5t to meet Euro 3 emissions standards or pay a charge of £100 per day. This meant that most 9+ year old vans instantly became impractical to run – leaving a large number of tradesmen and small businesses in need of a newer van.
Buyers Choosing Scruffy Euro 4 Vans
Van operators such as these tend to do low mileages and have tight budgets – making a new van an unlikely option. What was expected to happen was that they would buy good condition 4-6 year old vans to replace their non-compliant older vans – typically 9-15 years old.
Vans produced since the 1st October 2006 are Euro 4 compliant, and Sussex-based vehicle auctioneer Shoreham Vehicle Auctions says that buyers are choosing damaged, high mileage Euro 4 vans in preference to clean Euro 3 models.
This sounds like a case of once bitten, twice shy – having had their old vans effectively outlawed from the start of this year, they can see the writing on the wall for the next LEZ rule change, which will inevitably require operators to comply with Euro 4 emissions standards, as is already the case for commercial vehicles over 3.5 tonnes.
Alex Wright, Shoreham Vehicle Auction’s managing director, says that many used van dealers have been caught by surprise:
“A 56-plate Transit Connect or Vauxhall Combo that would have been worth £1,000 five months ago is now selling for £1,500.
These buyers coming out of a 9-15 year old van are small businesses who aren’t high mileage users and who can’t or don’t want to get finance. The result is them turning their attention to the cheapest vehicle possible to avoid being penalised which is a complete U-turn in their buying patterns predicted by the industry”
New Rules A Success?
Although the transition for van operators in the LEZ could be expensive and inconvenient, this trend can be said to have vindicated the LEZ rule changes.
Van operators are very unlikely to ever revert to an older van than they are currently using – meaning that Euro 4 and above may become the new de facto standard for van operators in London. This should considerably reduce emissions from their current levels.
Van hire companies have also expected an increase in trade as a result of the new LEZ rules, as van users who only occasionally travel into the LEZ will find it cheaper to hire a van when needed than buy a newer model. It is too early to say whether this trend will materialise, but there is no doubt that the new rules are having an effect on London’s commercial vehicle traffic.
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